View Categories

COVID19 Fica Deferral

Employer FICA Deferral Due to COVID-19 #

Overview #

This article provides guidance on implementing the Employer FICA Deferral due to COVID-19 in ProPay software as of May 2, 2025. The deferral allows eligible employers to postpone payment of the employer’s portion of FICA taxes.

Eligibility Check #

Before proceeding, review the IRS guidelines to determine if your employer qualifies for the FICA deferral:

IRS Deferral of Employment Tax Deposits and Payments

Implementation Steps #

If your employer qualifies, follow these steps to implement the deferral in ProPay:

  1. Download the latest version of ProPay.
  2. Navigate to the Employer Setup Page 3.
  3. Locate and check the box for FICA deferral (see image below).

[Image placeholder for checkbox location]

Effects on Payroll Processing #

After implementation:

  • For payrolls processed after Q1 2025, ProPay will generate 941 Tax Payments without including the Employer’s portion of FICA Taxes.
  • If Employer’s FICA has already been paid in Q2, it will be credited against the Q2 941 liability.
  • On the Payroll Summary report, in the EMPLOYER’S TAXES SECTION, FICA taxes will be labeled as DEFERRED.

941 Form Update #

Note: We are awaiting instructions for a revised version of the 941 form for Q2 2025.

Troubleshooting #

Common Issues and Solutions #

  1. Deferral not reflecting in reports
    • Ensure you’ve checked the correct box in Employer Setup Page 3.
    • Verify that the payroll being processed is after Q1 2025.
  2. Unable to find the deferral option
    • Confirm you’re using the latest version of ProPay.
    • Contact support if the option is still not visible.
  3. Deferral applied to ineligible employer
    • Double-check eligibility using the IRS link provided.
    • Uncheck the deferral box if applied in error and reprocess payroll.

Additional Support #

For further assistance:

Feedback #

We value your input! Please send any feedback or suggestions for improving this article to [email protected].


Note: This article is current as of May 2, 2025. Please check for updates regularly as tax regulations and software features may change.